Cheap Insurance is good! Or is it?
“If it looks too cheap, it probably is” my Grandad used to say. In the case of Landlord Insurance, he might just have been right!
A common problem for let properties is malicious damage by tenants. As a property owner, you might assume that something so prevalent would automatically be covered.
Still, as many have learnt the hard way, this is not a standard policy inclusion on many insurers buy-to-let Insurance policies.
What is Malicious Damage by the Tenants?
In simple terms, it is damage caused by your tenant that would not be classed as accidental.
For example, punching a hole in the wall or door, smashing windows or spraying graffiti.
What if my property is turned into a cannabis factory?
In recent years this issue has become particularly topical with police recording over 16,000 cannabis production offences across Britain in 2012.
One of our partner Insurers, Aviva reported a record number of claims involving residential cannabis farms in 2013, representing a 30% increase.
Significant damage, often running into tens of thousands of pounds, can be incurred if your tenant rips out your fittings, walls, or installs industrial heating and lighting etc.
These usually are be classed by your property Insurer as Malicious Damage by Tenant.
Am I Covered for Malicious Damage?
Let Property Insurance policies are generally based on either an “All Risks” basis. Whereby all potential losses are included unless the policy strictly notes an exclusion, or alternatively, a more restrictive “Specified Perils” basis whereby only those insured events specified in the policy would be covered.
In either case, you should check your Landlord Insurance policy wording carefully to ascertain whether Malicious Damage by tenants is included or better still, seek the independent advice of an Insurance Broker.
Can I add Malicious Damage by Tenants to my policy?
Some insurers offer cover as an extension to their standard Landlords Insurance policy, but availability is likely to depend on the specific policy terms and conditions.
What about Insync Insurance Landlord Policies?
At Insync, we compare Landlord Insurance policies from a range of insurers and contracts, and, as independent business insurance advisors, we help our clients find exactly the cover they need.
This may range from full all-risks cover including malicious damage by tenants to a more basis specified perils policy.
In some circumstances, you may want a cheap Landlord Insurance policy and may not be concerned by potential malicious damage by tenants.
However, we firmly believe that is YOUR choice to make and that every single client should understand what they’re buying.
Book a FREE Insurance Review
Book a free review with one of our insurance experts via our website or call 0330 124 0730 for more information.